The Employment Law Counselor

On Friday, March 8, 2024, the Eastern District of Texas halted a new National Labor Relations Board (NLRB) joint-employer rule that would have taken effect on March 11, 2024. The new Joint-Employer Rule would have implemented a more relaxed standard under which indirect—and even unexercised—control over another employer’s employees could qualify an employer as a “joint employer” with respect to application of the National Labor Relations Act (NLRA). If the new Joint-Employer Rule had gone into effect, it would have brought significantly more employers within the reach of the NLRA and the oversight of the NLRB.

In Chamber of Commerce of the United States et al. v. National Labor Relations Board et al., No. 6:23-cv-00553 (E.D. Tex. Mar. 8, 2024), the Chamber of Commerce and other entities sued the NLRB to enjoin the implementation of the new rule as unlawful on the grounds that it was contrary to common law and was arbitrary and capricious. The Court agreed and held that the rule could not take effect.Continue Reading